694 million euro fine for Agricultural Credit in the United States

2 years ago

Credit Agricole was prosecuted for violating the US embargo rules by facilitating transactions in dollars between 2003 and 2008, with Sudan, Iran, Cuba and Burma, countries subject to US economic sanctions . To end the investigation, the bank decided to agree to pay a fine of $ 787 million (€ 694 million). The amicable agreement expected to be announced Tuesday, October 20 in the day.
The US authorities have agreed to spend with Credit Agricole a deferred prosecution agreement. The “deferred prosecution agreement” avoid agricultural credit to plead guilty, and the bank would be under increased scrutiny for a given period, usually three years. If it violates the terms, criminal proceedings may be initiated.

At the end of September, US sources had reported that the London offices, Paris, Singapore and Geneva of Credit Agricole CIB, the corporate banking and group investment, were involved.

6.5 billion euros for the BNP in 2014

Credit Agricole has a precedent for such heavy. In 2014, BNP Paribas had pleaded guilty in a similar case and was fined nearly $ 9 billion (€ 6.5 billion). It had violated the International Emergency Economic Powers Act, the Federal law of 1977 which authorizes the President of the United States to restrict trade relations with some countries. This was the largest penalty ever imposed on an institution in this type of business and a strong signal to other banks

In theory, the guilty plea should lead to license suspension; equivalent to Wall Street to the death penalty. A chopper that Credit Agricole wants to save. In order to keep the license, the BNP was forced to accept a suspension for one year from 1 er in January 2015, some dollar clearing operations, primarily on the oil markets and gas.

The French finance minister, Michel Sapin, had reacted to the penalties imposed on the BNP by calling “Europe to mobilize to advance the use of the euro as currency International trade “. The BNP was indeed punished for acts that are not illegal under French and European laws, but fall under American law because the transactions were conducted in dollars. Another French bank, Societe Generale, is also suspected violations of the embargo by the United States, and negotiations are continuing.